James Gibb Residential Factors has acquired Life Property Management (lpm) in a significant deal to create Scotland’s second largest factoring business.
The move grows the number of properties under management by James Gibb by nearly 70% to over 44,000, making it the second largest factoring firm in the country.
The new, enlarged business will have 88 staff across three cities. The two firms both enjoy a strong presence in Edinburgh, Glasgow and Aberdeen.
lpm is the fastest growing factoring business in Scotland. It currently manages over 18,000 properties across Scotland and has built strong relationships with major house builders.
David Reid, owner of lpm, will become Group Managing Director of James Gibb, reporting to CEO Douglas Weir.
Douglas Weir, CEO of James Gibb, said: “The factoring sector in Scotland is ripe for consolidation. We have looked carefully at the market and the acquisition of lpm is a statement move designed to create genuine competition and differentiation across Scotland. It brings together two of the best factoring firms in the country, which can only benefit our owners.”
David Reid, owner and Managing Director of lpm, said: “The factoring sector in Scotland can improve dramatically. By coming together with James Gibb, we can deliver the quality standards, technological innovations and commitment to service that owners expect. Our business has been on a dramatic journey of growth and this latest step will ensure we are part of exciting change for the better right across Scotland.
“Owners should expect transparency, high quality service and value for money from their factors, and our promise to deliver that has helped us to grow as quickly as we have.”
The acquisition marks a major milestone in the growth of James Gibb, which has now grown ten-fold in the last seven years. In 2012, it had 4,000 units under management when it was acquired by Strathspey Capital, its parent company. The business is seeking further opportunities to grow through acquisition, including setting its sights on Northern England.
Douglas Weir added: “This is an exciting time for our industry where consolidation of existing factoring businesses will lead to improved resources and enhanced technological capabilities. We have seen the lettings sector consolidate dramatically and we expect to see factoring go through a similar process of change.”